Actis sells nine per cent stake in Alexander Forbes

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Private equity investor Actis has substantially exited from Alexander Forbes Group by selling a nine per cent stake in an oversubscribed offer through the Johannesburg Stock Exchange (JSE).

Actis still holds a four per cent stake in the South African financial services company.

Mercer Africa, a subsidiary of Marsh & McLennan Companies, has agreed to acquire 34 per cent of Alexander Forbes as part of the exit deal, an investment that would give Mercer an opportunity to broaden its exposure in sub-Saharan African markets.

Mercer is initially acquiring a 14.9 per cent stake, at the time of the Alexander Forbes listing, and, subject to regulatory approvals, will acquire a further 19.1 per cent stake, leading to a full exit for Actis and other private equity consortium members who collectively hold 54 per cent of the group pre-listing.

Actis led the USD1.2 billion buyout of Alexander Forbes in 2007, in one of the largest and most complex leveraged buyouts ever undertaken in Africa.

Natalie Kolbe, a partner at Actis says: “It is fantastic to see Alexander Forbes embark on the next stage of its development. We are extremely proud of our work transforming the business. Alongside the management team and other shareholders, we have achieved a tremendous shift in the business, one that epitomises our investment philosophy of our capital being more than solely financial. The strong interest we have received, in one of the largest listings in sub-Saharan Africa ever, signals significant appetite from both African and international institutional investors.”